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MATCHING FUNCTION FOR THE JAPANESE LABOUR MARKET: RANDOM OR STOCK–FLOW?
Author(s) -
Sasaki Masaru
Publication year - 2008
Publication title -
bulletin of economic research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.227
H-Index - 29
eISSN - 1467-8586
pISSN - 0307-3378
DOI - 10.1111/j.0307-3378.2008.00275.x
Subject(s) - outflow , inflow , matching (statistics) , economics , unemployment , stock (firearms) , propensity score matching , econometrics , stock market , labour economics , mathematics , statistics , physics , geology , geography , macroeconomics , mechanics , archaeology , meteorology , paleontology , horse
This paper estimates outflow equations for the unemployed and job vacancies under random and stock–flow matching using Japanese data. We find that for the outflow of the unemployed, the stock–flow matching model fits better than the random matching model at the quarterly frequency, but not at the monthly frequency. In contrast, the outflow of vacancies is affected by the stock of the unemployed as well as its inflow at both monthly and quarterly frequencies. In addition, we calculate the exit rates of the unemployed and job vacancies to show the relationship between the exit rates and the durations of unemployment and job vacancies.